Explanation: The best practice retention period for employee records that relate to discrimination charges is 7 years after the employee leaves the company. This is defined by the Rehabilitation Act of 1973. The purpose is to maintain necessary records in case the employee pursues legal action. A retention period of 2 years or 5 years is too short. The business many prefer to retain such records for 10 years, but the Rehabilitation Act of 1973 identifies 7 years.

Explanation: Poor communication between management and employees is a common problem during the growth phase of the organizational life cycle. In this phase, the organization often adds new layers of management, and so employees who previously had unfettered access to their superiors may find it difficult to get immediate feedback. This can be alienating for veteran employees. Outsourcing is more typical of the initial phase of the lifecycle, when the organization has yet to create its own departments to handle operations. Excessive bureaucracy and the resulting inefficiencies are common in mature and declining organizations. Finally, an inability to respond quickly to market changes tends to beset an organization after it has stopped growing and entered its decline phase.

Explanation: For human resources departments, the first step in enterprise risk management is an audit. Enterprise risk management is a systematic assessment of the potential dangers to an organization, as well as the creation of a strategy to mitigate these dangers. A human resources audit looks for areas in which the business is at risk, whether because of suboptimal working conditions or noncompliance with regulations. Employee interviews may be a part of the audit. The purchase of insurance may be one consequence of an audit. Forecasting may only occur after the completion of an audit.

Explanation: The Immigration Act of 1990 limited the number of temporary workers applying under H1B status to 65,000 each year. This number includes answer choices A and B (45,000 and 50,000, respectively), but both of these amounts fall under the stated maximum. Answer choice D (70,000) is too high.

Explanation: Unions may not participate in secondary boycotts. A secondary boycott occurs when the union tries to make the employer stop doing business with a third party. The other answer choices are false statements.